A.N.Sen, J. - (1.) This application raises a question of law of some importance. The question is whether the Income-tax Authorities are competent to commence or continue an assessment proceeding against a company in liquidation without obtaining leave of Court.
(2.) By an order made by this Court on the 16th of June, 1961, the company went into liquidation and the Official Liquidator was appointed Liquidator of the company. The company is now in the process of being wound up by this Court. The Official Liquidator of the company has been served with several notices of assessment in respect of the company by the Income-tax Authorities. He has been served with a notice under Section 142 (I) of Income-tax Act, 1961 in respect of assessment year 1964-65 and he has also received notices under Section 143 of the Income-tax Act, 1961 in respect of assessment years 1965-68, 1966-67 and 1967-68. All these notices are in respect of periods subsequent to the date of the winding up order. These notices have all been issued by the Income-tax Department (which is also hereinafter referred, to as the Department) without obtaining any leave of Court. The Official Liquidator has taken out the present summons, complaining to Court about the conduct of the Department in issuing the said notices without obtaining leave of Court under Section 446 of the Companies Act, 1956 and has asked 'that the proceedings under Sections 142 (1) and 143 of the Income-tax Act, 1961, initiated by the Income-tax Authorities against the company be stayed.'
(3.) Section 142 of the Income-tax Act, 1961 deals with enquiry before assessment and Section 142 (1) provides as follows : "(1) For the purpose of making an assessment under this Act, the Income-tax Officer may serve on any person who has made a return under Section 139 or upon whom a notice has been served under Sub-section (2) of Section 139 (whether a return has been made or not) a notice requiring Mm, on a date to be therein specified,-- (i) to produce, or cause to be produced, such accounts or documents as the Income-tax Officer may require, or (ii) to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement or all assets and liabilities of the assessee, whether included in the account or not) as the Income-tax Officer may require : Provided that-- (a) the previous approval of the Inspecting Assistant Commissioner shall be obtained before requiring the assessee, to furnish a statement of all assets and liabilities not included in the accounts; (b) the Income-tax Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.";